Summary of this article
SBI plans to raise up to Rs. 60,000 crore through bonds in FY27
Bond raise plans to meet rise in credit demand across segments
State Bank of India (SBI), the country’s largest lender, has approved a plan to raise up to Rs 60,000 crore through debt instruments during the financial year 2026-27, marking one of its biggest annual fundraising programmes aimed at supporting business expansion and maintaining a strong capital base.
The proposal was cleared by the bank’s central board at its meeting on June 18, 2026. According to SBI, the funds will be mobilised through a mix of long-term bonds, Basel III-compliant Additional Tier 1 (AT1) bonds and Tier 2 bonds. The fundraising may be carried out either in Indian rupees or other convertible foreign currencies, depending on market conditions and investor demand.
The bond issuances will take place over the course of FY27 through public issues or private placements and will be offered to both domestic and overseas investors. The bank added that the programme will be subject to necessary regulatory and government approvals wherever required.
The move comes as SBI prepares to meet rising credit demand across retail, corporate and infrastructure segments while ensuring compliance with regulatory capital requirements. Raising capital through bonds enables the lender to strengthen its balance sheet without diluting the government's equity stake, unlike an equity issuance.
AT1 and Tier 2 bonds form an important part of banks’ regulatory capital under the Basel III framework. While AT1 bonds help absorb losses during periods of financial stress, Tier 2 bonds provide additional capital support and improve the overall capital adequacy ratio. Meanwhile, long-term bonds offer stable funding for lending operations and other business requirements.
The Rs. 60,000 crore approval significantly exceeds the bank’s previous annual bond fundraising limits. During FY26, SBI raised around Rs 13,551 crore through Tier 2 bond issuances and also completed a Rs 25,000 crore qualified institutional placement (QIP), one of the largest equity fundraises in India’s capital markets, to finance future growth.
Investors generally view such fundraising programmes as a positive signal, a further indication that the lender is proactively securing resources to support loan growth while maintaining comfortable capital buffers. The flexibility to issue bonds in both domestic and overseas markets also allows SBI to optimise borrowing costs depending on prevailing interest rates and market conditions.
